Jet A1 prices 17% higher in Africa – IATA

The International Air Transport Association (IATA) has raised concern over the rising cost of aviation operations in Africa, disclosing that Jet A1 fuel prices on the continent are about 17 per cent higher than global averages, a disparity that continues to undermine airline profitability and ticket affordability. IATA made the disclosure at the 50th Annual […]

The International Air Transport Association (IATA) has raised concern over the rising cost of aviation operations in Africa, disclosing that Jet A1 fuel prices on the continent are about 17 per cent higher than global averages, a disparity that continues to undermine airline profitability and ticket affordability.

IATA made the disclosure at the 50th Annual General Meeting of the National Association of Nigerian Travel Agencies (NANTA) held in Ibadan, where stakeholders in Nigeria’s aviation and travel sector gathered to discuss the future of the industry amid growing economic and geopolitical pressures.

Speaking at the event, IATA’s Area Manager for West and Central Africa, Samson Fatokun, said African airlines are operating under a cost structure that makes competitiveness difficult, warning that without policy intervention, many carriers will struggle to remain viable.

According to him, Jet A1 fuel is only one part of a broader cost burden affecting African airlines. He explained that taxes and regulatory charges across the continent are between 12 and 15 per cent higher than those in other regions of the world, while air navigation charges are also about 10 per cent higher.

Fatokun added that airlines in Africa also pay significantly more for aircraft maintenance, insurance, and access to capital—costs that are between six and 10 per cent above global benchmarks. He noted that these structural challenges are compounded by currency constraints and delayed remittances in several African markets.

He further revealed that African governments are currently withholding about $954 million in blocked airline funds, a situation he described as damaging to liquidity and operational stability for international and domestic carriers operating on the continent.

Daily Trust however reports that Nigeria is not among countries with blocked funds.

“These challenges collectively push up the cost of air travel in Africa and make it difficult for airlines to operate sustainably,” Fatokun said, stressing that the industry’s survival depends heavily on supportive policy frameworks and regulatory reforms.

He called on the Nigerian National Assembly to take a more active role in addressing the sector’s challenges through targeted legislation that would reduce operational burdens on airlines and protect local carriers, noting that the industry contributes about $2.5 billion to Nigeria’s economy—approximately 0.7 per cent of GDP.

Fatokun warned that without intervention, the contribution of the aviation sector could decline as global uncertainties, including geopolitical tensions in the Middle East, continue to disrupt industry projections and fuel price stability.

The discussion at the meeting also touched on foreign exchange practices affecting Nigeria’s aviation market. Lawmakers and industry stakeholders expressed concern over the continued insistence by some international carriers on dollar-denominated ticket sales within Nigeria.

Chairman of the Senate Committee on Aviation, Abdulfatai Buhari, criticised the practice, arguing that it places unnecessary pressure on Nigeria’s economy and contradicts the principle of local currency usage in domestic markets.

He specifically referenced airlines such as Delta Air Lines, United Airlines, and Emirates, stating that the National Assembly would be compelled to review the issue if stakeholders formally escalate it.

“How can foreign airlines operating in Nigeria insist on dollar-only transactions? No country allows such practice without consequences,” Buhari said, urging stronger coordination between industry stakeholders and lawmakers to resolve the matter.

He, however, emphasised that legislative action alone would not be sufficient to fix the sector’s challenges, stressing the need for collaboration between regulators, airlines, travel agencies, and government institutions.

Earlier in the meeting, NANTA President, Dr. Yinka Folami, called for internal reforms within the travel agency ecosystem, particularly a clampdown on touting and unethical practices that undermine professionalism in the sector.

Folami assured stakeholders that NANTA would intensify efforts to sanitise the industry and promote transparency, accountability, and global best practices among travel agencies in Nigeria.